Transmission of stored compressed video over lossy packet networks has a number of important applications including movies-on-demand, interactive television, and corporate educational video distribution. Most of the present and planned packet networks, particularly Asynchronous Transfer Mode (ATM) networks, exhibit packet loss. Since compression reduces redundancy in the video signal, losing random parts of a compressed video bit-stream may cause drastic reduction in the quality of the received video. It is a continuing problem to improve the quality of video transmission over such packet networks.